Crude Oil Rallies amid Tensions in Middle East

Futures for crude oil rallied today as Iraqi government forces moved in the oil-rich region of Kurdistan to drive away Kurdish fighters. While the Iraqi government announced that it took under control region’s oil production and will soon resume supply, traders were concerned that the fighting will disrupt exports from Iraq, the second biggest oil producer in the Organization of Petroleum Exporting Countries.

Staying with the theme of tensions in Middle East, US President Donald Trump refused to certify Iran’s compliance with the nuclear deal, meaning that the United States may impose sanctions on the Middle Eastern country. International inspectors claim, though, that Iran is actually fulfilling its obligations, making it unlikely for other countries to join sanctions. Experts argued that without backing of other countries, the USA will not be able to make a noticeable dent in Iranian oil exports as the main destinations for Iran’s oil were Europe, China, and India.

Futures for delivery of WTI crude oil in November climbed 0.82% to $51.87 per barrel as of 22:08 GMT on NYMEX today. December Brent crude rallied as much as 1.31% to $57.92 per barrel on ICE.

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